FBI ends probe into Kraken’s Jesse Powell, returns seized devices from 2023 home raid over Verge nonprofit dispute, clearing path for Kraken’s IPO.
Emerging reports suggest that the Federal Bureau of Investigation (FBI) has discontinued its investigation into the proprietor of Kraken, a cryptocurrency exchange based in the United States. For nearly two years, the FBI has investigated Jesse Powell regarding an issue unrelated to cryptocurrencies.
The FBI has concluded its investigation into the founder of Kraken
The FBI is discontinuing its two-year investigation of Jesse Powell, as reported by Fortune. This decision continues the trend of US law enforcement agencies shifting their stances on cryptocurrency. The investigation, which was centered on a management dispute with Verge, an arts non-profit organization established by Powell, has little to do with cryptocurrencies.
In 2023, the Kraken founder was accused of hacking and cyberstalking Verge in response to a management dispute involving key executives. The events reached a crescendo when US authorities invaded Powell’s residence and confiscated dozens of laptops and cellphones as part of their investigations.
Powell filed a civil lawsuit against Verge last year, after new information surfaced that the parties had a dispute regarding access to Google and Slack accounts. Powell disclosed in his filing that he did not restrict access to accounts or monitor individuals at the time. He also claimed that Verge’s executive attempted to remove him from the board without giving him adequate notice.
The Justice Department has concluded its investigation and returned the confiscated devices to Powell. Additionally, a filing suggests that the devices contain evidence that Powell’s account of the events is accurate.
“The FBI’s raid on my house was devastating both personally and professionally,” said Powell. “It is still shocking that the raid was premised on Verge Center for Arts baseless accusation against me.”
It is uncertain whether the devices confiscated during the search contained Bitcoin or other cryptocurrencies. The top cryptocurrency was trading at approximately $23,000 at the time of the assault; however, Bitcoin has since achieved new highs, trading at nearly $120,000.
Despite the ongoing investigation, Kraken has maintained its pursuit of an initial public offering (IPO) while simultaneously introducing new product innovations. The tokenized US equities offering of the US exchange has been extended to Binance Chain, enabling multi-chain access.